tv On the Money NBC December 16, 2013 12:30am-1:01am PST
. welcome to "on the money." i'm becky quick. will santa deliver a big rally to investors or a lump of coal? the company that wants to change the way you watch tv. can you cut the cable cord or throw out that satellite dish? that's all up in the air. a business that's growing like weed. why marijuana could mean high times for state revenue, but does i send the wrong message to kids? how to make sure you get every tax dollar you're owed. "on the money" starts right now. >> this is america's number one financial news program. "on the money." now becky quick. here's a look at what's making news as we head into a new week. the markets were as cold as an ice storm in december this week.
by thursday the dow suffered the worst losing streak in four months. investors may have been a bit concerned about the federal reserve tapering its bond buying program. the markets rebounded on friday. consumers opened their wallets in november. retail sales rose by .7%. the numbers were boosted by auto sales as well. the strength of consumer is always important because it makes up two-thirds of the u.s. economy. that glass ceiling at general motors broken. the first woman will run the automaker. she's 51 years old. the vice president of product development and we began with the company as an intern back in 1980. instagram is rolli ining ou private messaging services. it allows sharing with an
individual or specific group inside of mass following. the company is owned by facebook and has 150 million members. so far december is proving to be a cold month for investors. is washington finally out of way? keith banks is joining us. thanks for being here. >> good to be here. >> we saw a bit of a pull back. do you think this is the beginning of a downturn or a breather? >> i think it's a breather. we had a great run in the equity markets. i think people are focusing on the issue of taper. >> do you think there's enough with the economy, with the good information that's been coming in for them to taper this month
? >> i don't think this month but a lot of people have view eed march of 2014. they probably want to see a few more data points to make sure the upward trend is sustainable, which we think it is. >> a big part has to do with the consumer. what do you think so far? >> i think so far so good. unemployment has been coming down which means more people are getting jobs. the markets are up. people home prices values are up. people are feeling better in general. >> this week we did see a small deal in washington. nothing huge but it was a bipartisan budget agree. it was announced by paul ryan and senator patty murray. here is what ryan told us earlier this week. >> we think it's a good template. this isn't the bargain of the century. this in this divided government is a modest but productive step
in the right direction. >> is a small deal better than no deal? >> i think it is. we all would have like to seen the grand deal struck. i think we have come to manager expectations is lower. i think some deal is better than no deal but obviously not the optimal deal. >> it's been a huge year for the market. gains of 27% is better. what are your high net worth clients doing at this point? >> more into stocks, bonds, cash? >> they're moving more into equities. it's been a slow jog, not a fast sprint. at the end of last year our clients had 46% of their portfolio in equities. right now they're probably about 53%. when the markets go up it doesn't incent them to want to put more money in. it makes them nervous and concerned. they are wonder if they should
wait for a pull back. interesting mind set. >> what do you think is happeni happening? >> is that from being badly burned in 2008 and 2009? >> yeah i think it's on people's minds. fixed income between 2007 and november of this year, $1.1 trillion flowed to fix income funds and $300 billion flowed out of equities. that great rotation, we're in the very early innings of that. we think there's a lot of many money that needs to move and will move. >> the caution is understandable. you get why people will get that way. what do you tell them? >> we tell them you need to increase your waiting in equities. if you get a pull back that's a great opportunity to get to work. timing the market is a very difficult thing. we think as tapering becomes more front and center you may
get a modest one. our view is you can't to put money into equities especially if coming out of fixed income. >> i'm going to put you on the spot. where do you see the market going in 2014? >> we're constructive. we think earnings for the s&p will go up to about $114 per share up from about 108 to 110 this year. part of what's going to happen as there more clarity, we think in the u.s. grows in excess of 3%, globally in excess of 4%, multiple expanse to 17 to 17.5 times. >> thank you so much for coming in. >> thank you. we're "on the money." changing the way you watch television. start-up getting easier. cheaper access to tv. why your cable guy is afraid of ariel, right from the company
and lived in a state of "what if?"... welcome to a new state... of health. welcome to covered california. the place to find quality, affordable coverage. financial help for those in need. and nobody can be denied because of a pre-existing condition. enroll now at coveredca.com. it's a david versus goliath fight that might make its way to the supreme court. they're trying to shut down aereo. retransmits cbs and nbc onto ipads and cell phones. joining me is aeroe founder and ceo, chet kanojia. thank you for being here today. >> sure. my pleasure. >> why don't you tell us how it
works. you have warehouses full of these antennas that you've set up. people get assigned to one of those. >> they're no longer warehouses. they have telecommunications equipment. the concept is simple. as a consumer you used to be able to use rabbit ears or tv antennas and a lot of people do. we miniaturized them so we can pack tens of thousands to hundreds of thousands in the space. they with use it remotely. it's all cloud based technology. really changes the experience, makes it simple, easy. very cost effective. you can get it without a cable subscription. >> broadcasters have been suing you because they claim you're
stealing their copyrighted information. >> it has no many. four federal courts have found that aereo is legal. name calming doesn't get anything done. four courts straight in a row have found that aereo prevails on its merits. >> they have asked it to be picked up by the supreme court. we're not sure if the supreme court will hear it. this is their copyrighted material. you're taking it and selling it without paying anything back to them. they have cable companies that pay them transmission fees. why shouldn't you have to pay them? >> we don't sell content. there's been antenna manufacturers, lots of different equipment manufacturers that allow consumers watch television and aereo is doing that. we don't sell content. we sell technology. consumers have to right to by equipment from whom they choose
to. >> the broadcasters say if you're successful they might not stop transmissions over the air. how would that impact your service? >> i can't speak on their beh f behalf. 60 million people, which is up from 54 last year use antennas to access television in some way shape or form. they would be disenfranchising 60 million people from an advertising perspective. i think it would be a tragedy to say that people, the right to have to use an antenna can't be allowed. >> i know you're in about ten cities so far. what are your plans for next year? how many more cities do you plan to get into? >> we're not done with our 22-city expansion. we'll continue to march down that road. we're a little behind. we were hoping to be a little
ahead at this point. we have a few more we'll knock off between now and mid-january. >> you're already profitable in some of the markets you're open in? >> i think that comment i made was the company on a market by market basis. we need a few number of subscribers to turn a market. we can generate a profit. >> in your perspective, do you think this is the end of the cable company? do you think more and more people will cut the cable and go with a company like aereo. ? >> people like internet-based systems. it's the nature of the beast. modernization is happening whether you like it or not. i think people will consume media online. the cable company provide internet connectivity. i don't think anybody is ending anything.
what is inevitable is online and choice of some sort has to come in. whether aereo is involved or not, the rate at which the prices are going up, i think every cable company is out there complaining at the imbalance in the system today. if you take aereo out to have the equation it's the same things they face. >> we want to thank you very much for joining us. >> my pleasure. is legalizing marijuana the key to big profits or could&wk. go up in smoke? the growing industry? places like colorado and washington state. what it means where you live? you can fin
in just a few weeks colorado and washington state will allow residents to smoke marijuana for fun. more states ease regulation on the drug, the street analyst is here. debra borchardt is here. thank you for being here. >> sure. >> we have colorado and washington state about to open things up. my guess is all the other states must be watching to see how this plays out. >> you're absolutely right. there's already 20 states that have approved it for medicinal and four more states expected to
go to recreational legalized. >> when states are looking for ways to come up with revenue, this has to be an easy way. is that's their thought? >> that's true. not only that, they're also saving a ton of money on criminal costs. now processing all those criminals, they're going to save millions of dollars there. >> the federal government, this is still illegal activity. they haven't stepped in yet, but that has to make the states take a bit of pause. >> it is a problem. the federal law is this is a controlled substance. you have banking issues, you have taxization issues. you have a lot of issues surrounding that. you have states that are just jumping right in. you have a big disconnect going on be p. >> i'm surprised someone from the federal government hasn't stepped in. are they just watching? >> they came out and say we will
turn the other cheek. we will not pursue any prosecution against you. they basically have thrown in the towel but haven't come right out and done that. >> they can change at any point. if you have a new administration, if they decide to change their mind. that's when i think about it from the i venvestors point of view. there's still a lot of unwritten rules and a lot of things have to be determined. >> that's correct. that's what you're seeing with colorado and washington. they're jumping in and writing the rules for this and everyone is watching them. we're going to see a lot of legislation come out in 2014 with local elections. thep you have then you have a lot of states waiting for 2016 for the presidential election. >> a will the of us look at this and say high time and make the jokes, but this is serious business. what have you found looking at it with an investor's eye? >> there are companies that are
publicly traded companies that are marijuana related. i thought this is going to be so cool. we're going to find these merging growth companies and isn't this going to be neat. i was really shocked that a lot of these companies were a little sketchy. some of the characters a little dubious. they're traded on over the counter platform which doesn't have the same requirements for a company trading on nasdaq on the new york stock exchange. >> what should investors be aware of in this situation? they don't have to do what? >> they do have to file, but no one is looking at the numbers they're filing. the audits they're doing. a lot of these companies tend to file late. they don't have to disclose as much about the past history of the people running the company. that's what investors need to be very careful about before they get involved in this. a stock scam was listed about this in august.
they were warning about pump and dump. penny stock brockibrokers sayin can make double the money and people are getting sucked into this. you see a lot of investors saying i'm going to make a ton of money and they can be manipulated. >> anything that looks like a promising company your think maybe down the road there is room for this? >> there are a couple of companies. they're into the selling of the machinery that you can use for indoor growing of any kind of plant but tends to be used for marijuana. i think there's going to be some more companies that will be publicly traded which is run by a former microsoft executive. there will be some legitimate companies coming through.
the calendar still reads december so april 15th may seem like a long way off. if you want to save big, time v running out. some filers could be facing bigger bills come spring. donna rosata is here. thanks for being here. >> thank you. >> there's a couple of weeks left that you can do to effect that bill. what are the biggest changes that have come through? >> there's been a lot of changes particularly for higher income earners. there's a lot you can do at this time. a great way to offset, it's been a banner year in the stock market. if you want to sell some of your securities, one great way to offset the gains is find some of the stocks you haven't done well on, sell those. maybe a little bit harder this
year to find the losers but the very effective deduction because it's a dollar for dollar offset your honor game. >> what about other things we could be doing like charitable deductions. >> this is the time of year people are thinking about. we al get a tax deduction for it. if donating more than $250, keep your receipts and you could get audited on that. there's a way to get a double play on charitable donations. you can get not only will you get a big tax deduction but also not have to pay that capital gains tax. >> that's great point. that's something i hadn't thought about before. what are some other tips? >> you can go green. the federal government is continuing to reward people who make home energy improvements to their house. if you install a better insulation, more effective door and window, as far as energy then you can get up to $500
credit. if you i stall a skolar energy system, you can get money up. >> the 529 plans, i was shocked when i learned you can save up to $13,000 a year. >> it's one of the most effective ways to save money. if you invest in state sponsored plan, you can get a state tax break. there's 34 states in the washington, d.c. who offer those kind of state tax deductions. >> is there a place i can check that out? >> go to fenway.org. it will give you a list of the states. >> thank you so much. >> thank you. here are the stories coming up. we'll hear from fedex, oracle and nike. tuesday kicks off the last federal reserve meeting of the year. we'll find out in tapering is in
the cards. on thursday, we'll find out whether existing home sales in november declieped for a third straight month. on friday the final estimate for third quarter gdp is due. that's the show. i'm becky quick. next week we go through the looking glass inside some of the retail best holiday windows. wait until you see these. each week keep it right here. we're "on the money." have a great one, and i'll see you [ female announcer ] i like to mix things up a bit
with grands mini pot pies. only four ingredients. and a few easy steps. weeknight dinner in a flash. and my family devours them. pillsbury grands biscuits. make dinner pop. guys... [ female announcer ] pillsbury cinnamon rolls, with cinnabon cinnamon, are an irresistible sunday morning idea. nothing calls them to the table faster.
make breakfast pop! ♪ this weekend on "extra" -- who is in, who is out and who just got snubbed? >> get ready for one of the most star-packed golden globes ever. >> oprah out. michael, sandra, julia and meryl in. >> somehow, people are not sick of me yet. >> coast to coast. what bradley cooper is promising to do on the red carpet. >> i said it here. >> and then the stars of "american hustle" extra raw. >> i expected to start lactating any second. >> christian bale on his beer belly. bradley cooper on the curlers and jennifer lawrence running out of the interview. tom hanks and the mary poppins cast big